AirAsia X Bhd, the long-haul arm of Malaysian budget carrier AirAsia Bhd, has signed a $1.5 billion deal with GE Aviation for the supply of engines on up to 28 new aircraft.

GE Aviation, a unit of General Electric, will supply CF6-80E1 engines for the airline's order of 25 A330-300 aircraft from Airbus, AirAsia X said in a statement on Monday.

Malaysia's Prime Minister Najib Razak, U.S. President Barack Obama and AirAsia Chief Executive Tony Fernandes were present at the signing ceremony for the deal.